A credit card is such a card that you can call Kuber's treasure. Because when you need a quick loan so a credit card is the best option. A credit card is one of the best options to get money when the need arises. Many people think that credit card is so expensive. So if you think that then you are wrong. A credit card is one of the most suitable ways to get a quick loan. You can't believe the lowest interest rate of a credit card is 1.5%. Wow! that is so impressive. The credit card interest rate can depend on various companies or banks. Credit cards can be expensive if you miss out on timely repayment of dues date as interest rates levied by the lending institutions can heavily impact your personal finance as well as credit score.
What is Credit Card Interest Rate?
Credit Card Interest rates mean a type of finance charge, that you have to pay for borrowing money. It varies from one card issuer to another and may also differ across different credit cards of the same issuer. Before taking a credit card, you should know about the interest rate applicable to it. Unlike other loans, credit card interest rates are generally not linked to the credit score and repayment capacity of the user. Every credit card has a predetermined finance charge and will be the same for all customers.
Credit Card Interest Rate of All Banks
| Credit Card Bank Name | Interest Rate (per annum) |
|---|---|
| Kotak Mahindra | 1.5% |
| HDFC Bank | 1.99% |
| ICICI Bank | 2.49% |
| Bank of Baroda | 2.6% |
| Bank of India | 20.4% to 30% |
| Canara Bank | 13% to 14% |
| Indian Bank | 19.92% |
| Indian Overseas Bank | 30% |
| Punjab National Bank | 35.89% |
| State Bank of India | Up to 42% |
| Union Bank of India | 34.49% |
| Axis Bank | Up to 52.86% |
| Bandhan Bank | 23.88% to 45% |
| CSB Bank | 11.49% to 21.49% |
| City Union Bank | Up to 42% |
| DCB Bank | 24% |
| Dhanalaxmi Bank | 18% to 24% |
| Federal Bank | Up to 41.88% |
| IDBI Bank | 14.9% |
| Induslnd Bank | 36% |
| IDFC First Bank | 42% |
| Jammu and Kashmir Bank | 36% |
| Karun Vysya Bank | 15% to 22% |
| Au Small Finance Bank Ltd. | 36% to 48% |
Low-Interest Rate Credit Card in India 2023
| Bank | Credit Card | Interest Rate |
|---|---|---|
| Kotak Mahindra | Kotak Mahindra Best Price - Premium Card | 1.5% |
| HDFC Bank | HDFC Diners Club Black Credit Card | 1.99% |
| HDFC Bank | HDFC Infinia Credit Card Metal Edition | 1.99% |
| ICICI Bank | ICICI Bank Instant Platinum Credit Card | 2.49% |
| Bank of Baroda | Bank of Baroda Signature Visa Credit Card | 2.6% |
High-Interest Rate Credit Card in India 2023
| Bank | Interest Rate |
|---|---|
| Axis Bank | Up to 52.86% |
| City Union Bank | Up to 42% |
| State Bank of India | Up to 42% |
| IDFC First Bank | 42% |
| Federal Bank | Up to 41.88% |
When is Interest Charged on Credit Cards?
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When You Do Not Pay Credit Card Bill on Time: Suppose you borrow some amount using your credit card. And the company will give you a due date to repay borrowed amount and you will make that payment late so that then the company can charge you an interest rate.
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When you pay an amount less than the total amount due: When you need to pay full repayment of your borrowed amount and you will pay a little amount of the total due amount.
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When you withdraw cash using a credit card: Another reason that can the company charged fees on your credit card when you need cash and you have withdrawn cash using your credit card.
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When you carry forward outstanding: It means you haven't cleared your previous month's outstanding in full, the bank will carry forward the remaining amount to the next billing cycle.
So mainly these four reasons are responsible when a company or bank charges fees on your credit card. There are many other reasons why the company or bank can charge on credit cards.
What is the credit limit?
A credit limit means that the company or bank which have a credit card provides you with the maximum amount that will grant a borrow through your credit card. It can be increasable if you will increase your credit score and when your credit score will go down then you credit limit also decreas.
How to Increase Credit Limit?
- Apply for a New Card: Applying for a new card is one of the best options for increasing your credit limit. But why do you apply for a net credit card when you also have one? So this idea for suitable for new users.
- Use Your Credit Card Regular: If you use your credit card regularly then a chance will make your credit card limit can increase.
- Pay Your Bills on Time: Paying your bills on time is another best option for you to increase your credit limit.
- Request to increase Credit Limit: Also you can request the company or bank to increase your credit card limit. You can request through the bank or online.
- Provide Your Income Statement: The final option is to provide your income statement. If you have provided your income statement so there is a major chance to increase your credit limit.
So above we will describe the top 5 ways to increase the credit limit. There are many other options available to increase your credit limit. But these options are best.
Eligibility Criteria for Getting a Credit Card
Are you looking to get a Credit card? That's good, so you need to confirm your eligibility for getting a credit card. Here below we mention the eligibility and criteria for getting a credit card.
- Nationality: Indian
- Credit Score: 700 and above
- Minimum Age: 21
- Employment Status: Salaried or Self-employed
- Current Income and credit utilization behavior.
Documents Required to Apply for a Credit Card
| Requirements | Salaried Person | Self Employed |
|---|---|---|
| ID Proof | Passport, Permanent Account Number Card, Aadhaar Card, Voter's ID | Passport, PAN Card, AAdhaar Card, Voter's ID |
| Residential Proof | Aadhaar Card, Electricity Bill, Telephone Bill | Aadhaar Card, Electricity Bill, Telephone Bill |
| Income Proof | Salary Certificate, Recent Salary Slips, Employment Offer Letter | Certified Financials, Recent Income Tax Return Statement, Passport |
How to Apply for a Credit Card Offline?
Apply for a Credit Card on BankBazaar by Following 4 Simple Steps:
- Compare credit card offers.
- Select from the top cards offered by leading Indian banks.
- Check your eligibility by entering a few personal details.
- Enjoy instant approval online after filling out your application form.
How to Apply for a Credit Card Online?
- Visit the bank's website.
- Explore the cards offered by the bank.
- Use the comparison tool available to compare their features and benefits.
- Select the card that is the right one for you and hit the 'Apply' button.
- Fill in the required details and upload all necessary documents.
- Submit your form.
FAQs
Why is the credit card interest rate so high?
Now a day many users are properly not paying their credit card bill and the risk of loss rise in the mind of company or bank. If you do not pay your credit card bill properly, the credit card issuer will have to bear the burden of the same until you do.
What is the interest rate of a credit card?
The interest rate of a credit card is starting from 2.5% and ends at 3.5% monthly.
Will all credit cards have an interest-free period?
No, an interest-free period will be given at the discretion of the bank.
Which is the best credit card?
- YES Bank-BankBazaar Co-branded Credit Card
- IndusInd Bank Platinum Aura Edge Credit Card
- RBL Shoprite Credit Card
- IndianOil Citi Credit Card
- HDFC Freedom Credit Card
